World Health? FATF Crash?

Nothing to see here folks...

FATF Week in Paris… Why the Market Crash?

Who makes decisions about financial intervention and World Health?

According to WHO (The World Health Organization), contributions from the U.S. government, American citizens, and U.S.-based charities make up 76% of all voluntary contributions to the organization. That amounted to $945.6 million from 2016 to 2017. 

This is pretty close to what Tucker, the narrator over at Fox News has to say.(link) His story checks out. In fact just about everything national socialist “conservatives” say about international socialist “progressives” (and vice-versa) is as close as either gang ever comes to saying anything true. The puppet FOX claims the Chinese dictatorship has propped up at the WHO (who send men with guns to shoot and jail kids because of plant leaves) is clearly pathetic.(link) But to the Chinese dictatorship he’s “our” pathetic stooge. Who else does Red China have shaping policy?

Sum Ting Wong

Bank of Communist China

Meet the new FATF President, Xiangmin Liu, and the coercive agenda-framers’ veep Marcus Pleyer. A communist Chinese dictatorship puppet and an ecological National Socialist from former communist soldier Merkel’s Democratic Republic of Antifaschistischer Germany.(link) Here are China’s policies😦link

  • Under the Chinese Presidency, the FATF will continue to… work on confiscation
  • under the Chinese Presidency the FATF will conduct a strategic review of its core work.
  • Under the Chinese Presidency, the FATF will develop the methodology for countries to be assessed against the standard for virtual assets…
  • Financial institutions continue to attract attention for the wrong reasons and find themselves the focus of increasingly large-scale money laundering as highlighted by investigations and sanctions by law enforcement agencies and supervisors.
  • The FATF will continue to strengthen the capacity and effectiveness of criminal justice systems, including the investigation and prosecution of money laundering

Prohibitionists routinely cause financial collapses via asset forfeiture enactments, and when they do, the Republican Party they infiltrate and poison loses several successive presidential elections. China noticed this weakness. This latest crash came during FATF Week in Paris.(link) These bureaucrats design the deliberate looting of bank accounts, and crash economies as in 2008, and cause flash crashes.(link)

As soon as the latest FATF Crash needed to be explained away, subsidized media rushed into print with the 3-month-old communist lab virus no longer profitable to ignore. The FATF Week meeting was covered in Pakistani and Iranian media–and few other journalistic news outlets. 

The U.S. President ought to investigate FATF and declaw it. Charging the communists reparations for their germ lab accident could be an additional step. The simplest method would be to use the asset-forfeiture FATF itself recommends to seize the Treasury Bills in Chinese communist hands. What better way to combat terrorism?

When it comes to votes, either way, this crash and depression will arguably benefit the Libertarian Party, just as the 2008 Bush FATF crash helped us increase our vote share by 328% from 2008 to 2016. While the economy was recovering from the previous asset-forfeiture crash, medieval prohibitionism of plant leaves and contraception could be overlooked. But prohibitionism is the weakness in America’s mixed economy totalitarians have learned to exploit.

Perot and Libertarian impersonators drop out

Before the George W. Bush asset-forfeiture Crash

Fool me twice, shame on me!

LP votes AFTER the 2008 asset-forfeiture Crash!

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Brazilian blog

FATF Crashes Stock Market again!

Nothing to see here folks...

This happened during FATF week in Paris: an orgy of international asset-forfeiture plunder planning! (Source: S&P 500)

The market began wobbling February 16, then crashed violently on February 20, the day the Communist News Network began screeching and wailing about a not-really communist virus outbreak near a germ lab. So what else was happening on those days in places like… Paris? Here’s a taste: 

“FATF Week, 16-21 February 2020. On Sunday 16 February, more than 800 representatives from 205 countries and jurisdictions around the world, the IMF, UN, World Bank and other organisations, will arrive for FATF Week in Paris, France…”(link)

So what is FATF? It is the Harry Anslinger-Herbert Hoover-Richard Nixon-Bush-Bush asset-forfeiture Crash and Great Depression machine. Remember Milton Friedman in Free to Choose? In a fractional-reserve banking system, the money you deposit exists in several places as the clearing-houses compensate the instruments of money transfer. Finally it is loaned out at interest, so a lot of it is no longer at the bank.

So when federal agents with guns and blanket John Doe or Unnamed Asset warrants shove their way inside to grab cash and securities, other depositors can see the liquidity crunch coming and withdraw their assets. This reverses the leveraging of assets which–absent tax and prohibition raids–increases the money supply. The reversing result is mass bankruptcies and devaluation of assets.

Here’s what went on in Paris just before the crash: (link) Sound farfetched? Read their glossary: 

The term confiscation, which includes forfeiture where applicable, means the permanent deprivation of funds or other assets by order of a competent authority or a court. Confiscation or forfeiture takes place through a judicial or administrative procedure that transfers the ownership of specified funds or other assets to be transferred to the State. In this case, the person(s) or entity(ies) that held an interest in the specified funds or other assets at the time of the confiscation or forfeiture loses all rights, in principle, to the confiscated or forfeited funds or other assets. 

FATF was formed as soon as the Reagan-Bush-Biden prohibitionist asset-forfeiture crash deepened into a really bad recession with stock losses and unemployment. They admit this: 

The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions. The mandate of the FATF is to set standards and to promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and the financing of proliferation, and other related threats to the integrity of the international financial system. In collaboration with other international stakeholders, the FATF also works to identify national-level vulnerabilities with the aim of protecting the international financial system from misuse.

Pretty shadowy and swampy, huh? And if this thing does wreck economies, who can be held accountable? Who would admit the obvious facts? How would you claim damages?

This sort of thing also happened in 1907, mainly due to new federal regulation of food & drugs and State bans on Beelzebubba’s Beer and The Demon Rum. It happened again in 1921, but was covered up by nullification, then returned with a vengeance in 1929, after Mabel Willebrandt explained, that August, what was going on on “The Inside of Prohibition,” in 20 national papers. Accelerating stock depreciation set in and investors dumped assets…

The banking panics of the Great Depression kept pace with federal indictments of yeast and glucose companies and confiscation of assets plus heavy fines measured in pounds of gold bullion–while the Coast Guard and Customs seized huge shipments of heroin that was steadily replacing beer. The federal government feigns bovine incomprehension of all this causality. 

Government spin-doctors also disavow any knowledge that the Reagan-Bush-Biden asset-forfeiture craze of 1987 had anything to do with that recession, and play dumb in sworn testimony and thick reports on the Flash Crashes. Here’s the latest one, with “market crash”, “financial collapse”, and “economic recession” nowhere to be seen.(link) Here’s a foretaste of Knife-Your-Customer snitching: 

A. CUSTOMER DUE DILIGENCE AND TIPPING-OFF.
1. If, during the establishment or course of the customer relationship, or when conducting occasional transactions, a financial institution suspects that transactions relate to money laundering or terrorist financing, then the institution should:
  (a) normally seek to identify and verify the identity of the customer and the beneficial owner, whether permanent or occasional, and irrespective of any exemption or any designated threshold that might otherwise apply; and
  (b) make a suspicious transaction report (STR) to the financial intelligence unit (FIU), in accordance with Recommendation 20.
2. Recommendation 21 prohibits financial institutions, their directors, officers and employees from disclosing the fact that an STR or related information is being reported to the FIU. A risk exists that customers could be unintentionally tipped off when the financial institution is seeking to perform its customer due diligence (CDD) obligations in these circumstances. The customer’s awareness of a possible STR or investigation could compromise future efforts to investigate the suspected money laundering or terrorist financing operation.
3. Therefore, if financial institutions form a suspicion that transactions relate to money laundering or terrorist financing, they should take into account the risk of tipping-off when performing the CDD process. If the institution reasonably believes that performing the CDD process will tip-off the customer or potential customer, it may choose not to pursue that process, and should file an STR. Institutions should ensure that their employees are aware of, and sensitive to, these issues when conducting CDD. 

Nice friendly stuff, eh? But hey, what’s another global economic crash compared with a convenient flu outbreak generating fewer fatalities than U.S. auto accidents for the same timeframe? This coming recession could easily eliminate the memory loss that sets in after each new crash and depression is explained away. Libertarian candidates could explain to voters what happens time after time, and I’ll lay odds someone will listen

Ignore it and it'll go away...

FATF Bush Crash, Obama Dems win 8 years. FATF Trump-Biden Crash?? (link)

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Brazilian blog

What caused the 16 Feb Crash?

Asset-Forfeiture Looting is not Free trade

Asset-forfeiture is the leper’s bell of an approaching looter.

Type S&P 500 and choose the 6 month index. By running the cursor along the peak of the curve you can tell when the slope of the curve turned negative. That date looks like 19FEB2020. CNN expelled a huge smokescreen on China’s Communo-Virus close to then, but CNN is not of a truthful persuasion. The corporation actually PAYS airports to display its screed on waiting area screens, and nobody had more interest in asset-forfeiture looting than Nixon-law subsidized media looters. So who is next on the list of usual suspects? Whose name appeared on the Flash Crashes of 2008, 2010 and 2015?(link)

Yes, I am talking about the Financial Action Task Force currently tasked with looking into corruption in not-really-communist China. And guess what… see those twin troughs just to the left of February 19? The high point just before the fall-where the slope goes from increasing to decreasing–coincides reasonably with issuance of a Swiss report on how Swiss banks have agreed to FATF-approved Knife Your Customer and similar policies. The report was released, I’d wager, on or about February 17, 2020, judging from the stock prices graph. The FATF is very careful to avoid exact dates unless there are no nearby stock gyrations.(link

FATF reports and such are reportedly released in Month, Year, and surrounded with a smokescreen of obfuscating acronyms. The MER on Switzerland was adopted in October 2016 and at the urging of AML/CFT advisors went through R.2 through R.21 with threshold gaps triggering due diligence requirement adjustments and execution of operations in cases of suspicion. Since the same Swiss whose papers debated U.S. newspapers about wholesaling heroin in February of 1929 are today deemed too naíve to write their own laws, the FATF hands elected representatives AMLAs to sign and pass, and scolding CDBs (a looter code of ethical robbery).(link)

FATF does admit that an OBA-FINMA became enforceable with guns on January 1, 2020, and for the ten-thousandth time dins its message that anyone who would rather not be robbed by tax collectors can only be so anti-social if actually practicing or at least abetting the financing of religious terrorists flying hijacked planes into tall buildings in New York.(link) Everywhere you look, logical disjunction is resorted to to deliver this point subliminally. Any declarative statement, even “two plus two makes four” is still true after some dishonest skunk tacks on a disjunction. Two plus two makes four or five is therefore as logically true a statement as it was before tacking on the cognitive mutilation and repeating it a million times–sad, but true.(link

See their pro-coercion brainwashing movie: Not a Victimless Crime

 

So a preference for keeping your own money means–in FATFspeak–you are morally the same as 1912 balkan Mohammedans or Christians kidnapping, raping and murdering each other, and selling the survivors to the highest bidder.(link) By their lights, this makes you OAD FCT according to the GBCF.(link

You can see how this goo, like the language in the Anti-Drug Abuse Act of 1987-is contrivedly hard to follow or, once grasped, to explain to the innocent. Then again, if your pet policy is guaranteed to wreck the economy that pursues it, clarity is the enemy. 

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Live on Amazon Kindle in 2 languages

Brazilian blog

 

Dry Killers, 2020

PERP NOT SHOWN, REDACTED

FEDERAL Prosecutor initiates deadly force against wife, self. (link)

Dry Killers was the term The Chicago Tribune used to describe government agents and their hangers-on who routinely killed unarmed boys and men in the 1920s and 30s. Anyone who thinks this is a prohibition phenomenon that’s over and done with might care to explain today’s news–or news of the past century.

Federal Prohibition and Second Amendment Kristallnacht infringement mouthpiece Timothy Delgado turned up dead just north of Folsom Prison in California, where police say he apparently killed his wife, then himself. Whether the reporting is accurate or not, it is typical of fanatical prohibitionism–which after the complete economic collapse of 1929-1933 shifted from beer, wine and Demon Rum to coercion over plant leaves and their extracts. The other big change is that big shots at the Chicago Tribune had a lot invested in alcohol precursor chemicals during national prohibition. They evidently have no such stake in Post-Nixon avatars of Satan. Fanatics infiltrating federal agencies, on the other hand, most certainly have a serious stake in the initiation of deadly force.(link)

Tribune reporters back then tracked down and reported on every storeowner, housewife and boat operator murdered in cold blood by prohibition agents. Nowadays such events are typically reported only by Reason Magazine writers. Prohibition killings are masked as “resisting arrest” and other such euphemistic camouflage, and a way is in every case found to minimize their impact on public perception. But America was not always so like a Christian National Socialist Democracy.(link)

Chicago was then and is now home to the largest glucose corn sugar plant on planet Earth. Yeast and sugar companies bankrolled bootleggers who installed refinery-grade continuous stills in bankrupt three-story mansions after The Crash. These outfits could afford to repay the political State in its own coin. This actually happened twice. In 1921-22 civilian posse comitatus‘ hunted down killers with badges as the economy collapsed, then a truce was established. The economic effect can be seen in this graph for hops, a precursor plant used to brew Beelzebub’s beer.(link

Nullification of felony beer prohibition laws

The 1923 Gentleman’s Agreement shifted enforcement away from beer until March 2, 1929, after which the economy lasted another 6 months

The truce broke down when the Klan defected from the Dems in 1928 and helped elect Herbert Clark Hoover. Prohibition related murders–including the killing of federal agents–immediately filled all the papers, and books appeared right after the Crash–itself caused by withdrawals of money from banks to avoid federal asset-forfeiture confiscation. That is a little-appreciated aspect of a fractional-reserve banking system after a looter takeover. Here is an excerpt from Before and After Prohibition, a 1930 compendium by Maryland Senator Millard Tydings:

ONE of the most shocking results of the ten years of effort to enforce national prohibition is the long record of killings by prohibition and other Federal law enforcement agents. Even among some of the strongest advocates of the “noble experiment,” there have been widespread expressions of revolt at this bloody spectacle. Information regarding many of these killings has occupied much space in the public press, and editorial comment upon them has been most denunciatory. Yet they continue—apparently an almost inevitable accompaniment of the enforcement of this law.

Senator Tydings managed to uncover some 1300 suppressed killings committed by prohibition agents that were kept out of the papers and seldom discussed–including cases of federal gangs gunning down each other! Here’s a fratricidal example from Tydings’ collection: 

George Ball and William Porter, State agents, killed in battle with Federal Revenue officers at Camp Creek, West Virginia, June 20, 1925. (Each band of dry raiders thought the others were bootleggers, and they opened fire simultaneously.)

So this pattern of superstition, pseudoscience and political asset-forfeiture looting requires the initiation of force. This in turn requires killing people so that the law is taken seriously. Who advocates these murders? The answer is politicians who, like Germany’s NSDAP, represent Christian altruism–except for the part about how “thou shalt not kill.”(link

Thus, mystical collectivist cheapening of gratuitous murder stimulates demand for revenge and counterexamples, and the sort of agents and prosecutors attracted to this line of work do not even value their own lives, much less those of others. Remember this when next you hear one of God’s Own Prohibitionists seeking to pervert the Constitution and coerce women for “the unborn.” Just as Republican and Democrat prohibition fanatics cannot see “thou shalt not kill” in a book that does not condemn enjoyable substances, just so they cannot grasp “All Persons born” in the U.S. Constitution, or the absence, nay, denial of any federal authority for enactment of sumptuary laws.(link)

Incidentally, Millard Tydings was reelected over and over and served 44 years in the Senate.

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Live on Amazon Kindle in 2 languages

Brazilian blog

YES WE CAN SAY NO!

Country Joe and the Fish Intergalactic Fan Club

It’ll kick in soon, just you wait, it takes time…

THERE WAS A TIME WHEN YOU COULDN’T just say no to violent aggression. In the 1920s mystical fanatics sought to pressure and intimidate voters into having someone point guns at people over beer or plant leaf soakings. This immediately wrecked the economy until gentlemen’s agreements between producers and government agents took effect in early 1923.(link)

But increased penalties soon crashed the economy, and until 1931 there was no way to vote no on having people robbed and shot. If you voted Democratic, that was a vote for low tariffs, but also for debased currency and white supremacist racial collectivism. If you voted Republican, that was a vote for the gold standard, but also for shooting and robbing the peaceful, high excise and income taxes, and helping Germany spend money on armaments rather than pay reparations for damages wrought during The Great War. There were communist-socialist infiltrators and even native brainwashees, of course, offering more prohibition and tax laws and amendments, but nobody offering freedom from coercion.(link)

It was the Liberal Party platform of 1931 that tackled the Eighteenth Amendment head-on and demanded it be repealed along with the Volstead Act, Blue Laws and the ban on Sunday baseball games.(link) Liberals sought to make divorce safe and legal, and were absolutely opposed to Ku-Klux collectivism and Comstock laws. And guess what? There was a Gentleman’s Agreement.(link) Rather than run against those spoiler votes and lose to the Republicans, the Democrats copied the Liberal Party repeal plank into their own platform and won five consecutive presidential elections with nary a Crash nor added Depression wrecking the economy.(link)

So when next a Republican shrieks that Bernie is going to open gulags in North Dakota and Maine unless your vote helps God’s Own Prohibitionists ban contraceptives, shoot more teen-agers, wreck more economies in Latin America, export more fascism and bomb more ignorant wretches on the other side of the planet, remember that YES WE CAN SAY NO.(link)

Democrats no less agitated will grab your cuff with predictions that God’s Own Prohibitionists will grab pussy, ban birth control pills, appoint Klan judges, boil away the polar ice caps and bring yet another Asset-Forfeiture Crash and Depression as in 1929, 1987 and 2008–unless you help them ban electric generation plants, customs inspections, take-home pay and automobiles. Again, YES YOU CAN JUST SAY NO. How? (link)

We wrote the Roe v Wade decision!

A brief history of libertarian spoiler vote clout. Our 4.4 million presidential votes (equal to the State of Virginia) were only about a fifth of the LP votes captured in 2016.

BY VOTING LIBERTARIAN! 

The LP looks for ways to NOT point guns at people. Our non-aggression principle and platform is that simple. Libertarians understand that pointing guns at non-violent citizens is the gateway to massacres, gulags, Kristallnacht, Auschwitz, Treblinka, The Killing Fields, Ukraine famines, People’s Temple suicides, wars, racial strife, collectivist coercion, asset-forfeiture confiscations, Crashes and Great Depressions that lead to unemployment, taxation and more force-initiating laws.

HOCKEY STICK ANYONE?

This graph fits LP presidential votes to the logistic replacement curve that shows how cassettes and CDs replaced vinyl, how elections replaced monarchies.

No our candidates don’t often get elected and begin shouting out orders in the Senate. Instead our candidates make it possible for… YES, YOU to send a clout-packing spoiler-vote message to The Political State Just Saying No to force, intimidation, murder, robbery, parasitism, war, treachery, censorship, rights infringement, girl-bullying, pull-peddling, election rigging, subsidized vote corruption, graft, ugly gimme caps and exportation of destabilizing fascist policies.

Libertarian spoiler votes state this clearly, with no strings, and DEFEAT the more brutal of two looters running for that same office. Over a hundred of our candidates actually hold office, and that scares the crap living daylights out of looters of both wings of the communo-fascist persuasion. 

Suckers and cowards settle for one vote out of 129 million and end up with Trump, Obama, Bush, Clinton, drug wars, terrorist attacks, maimed veterans, high taxes, dead cops, dead kids, inflation, prohibitionism, Crashes and Depressions. Libertarians pull the slot machine handle on one vote out of 4 million, and get roughly 30 times the law-changing clout for that vote. It takes a special kind of stupid to miss that chance.

That realization is why our vote share–barring idiotic 5th column planks to wreck our platform–increases by about 80% per year right now. With this we bring you legalization, tax cuts, individual rights, peace, choice, freer markets, and the withering away of the initiation of harmful, deadly and coercive force. We replace that force with freedom from coercion, and we accomplish all this one vote at a time.

Find out the juicy details behind the mother of all economic collapses. Prohibition and The Crash–Cause and Effect in 1929 is available in two languages on Amazon Kindle, each at the cost of a pint of craft beer.

Live on Amazon Kindle in 2 languages

Brazilian blog

The tug from below–spoiler votes!

Partido Obrero de Unificación Marxista

Comrade Eric Arthur Blair–POUM

Civilized men flying overhead were trying to kill George Orwell as he composed some wartime essays, especially The Lion and The Unicorn (link) Every nation in Europe was run by men who deeply believed altruism–as formulated by the mythical Jesus and by Auguste Compte–to be a good thing, not at all causally connected with witch-sniffing, the rack, the guillotine, burning at the stake or book-burning.(link) These things did in fact invariably coincide, the way Crashes and Depressions coincided with making beer a federal felony to justify asset-forfeiture looting.

Bombs fell out of the sky as materialist altruists fought mystical altruists in deadly earnest, each convinced no non-altruist alternative could possibly exist–much like the United States and Brazil today. Orwell, a collectivist, trusted the judgment of the “common man,” from whom the blimps, toffs, dividend-drawers and plutocrats could learn plenty:

The nation is bound together by an invisible chain. At any normal time the ruling class will rob, mismanage, sabotage, lead us into the muck; but let popular opinion really make itself heard, let them get a tug from below that they cannot avoid feeling, and it is difficult for them not to respond. The left-wing writers who denounce the whole of the ruling class as ‘pro-Fascist’ are grossly over-simplifying.(1941)

So what is this tug from below that unavoidably makes itself felt? It is not violent demonstrations, or the Kremlin would be in DC. It is also not lobbying by “non-partisan” single-issue groups. Not only are they castrated by laws ordering them not to influence elections, they have a financial stake in the continued existence of the hobgoblin they pretend to battle against. One clue is in the tug from above: political party platform planks.

Looter politicians avoid mentioning planks. Planks are what people read before donating money.(link) God’s Own Prohibitionist parties–yes there are two–promise to seek a Constitutional Amendment to prohibit birth control and all 3 or 4 communist parties promise to do the same to throttle off access to energy and take-home pay. Fascist partisans vehemently deny ties to religious nationalsocialism just as anti-energy parties cover acres of newsprint convincing voters they are “not really” communist.

Law-changing clout of spoiler votes!

All political change comes from growing party spoiler vote clout–Dokuro Chan

Yet the 16th and 18th Amendments that wrecked the economy came from ku-klux and socialist platform planks, just as all current shibboleths against economic freedom and individual rights come from the exact same places. Parties that seek to divide rights take their cues from religious or materialist totalitarianism. The only party that regards freedom and rights as indivisible is the Libertarian Party. Visit your state or local LP to see what you can do to help. Your spoiler vote returns at least 20 times the change dividend if invested against the Kleptocracy.

LP growth BEFORE the platform sabortage

Before adding 2018 planks to import terrorists and protect them from capital punishment the LP was growing 80% per year. What planks are your state or local LP writing?

Why not delve into what sort of voting caused the 1929 Crash? Prohibition and The Crash–Cause and Effect in 1929 does exactly that, matching newspaper accounts against stock market reactions and competing theories. It is live on Amazon Kindle for the price of a pint.

My other-language blog, Expatriotas.blogspot is amigra.us

 

1929 State of the Union Message

Dry Killer Herbert Hoover

Branding folks felons for beer since March 1929

On December 3, God’s Own Prohibitionist, Republican President Herbert Clark Hoover delivered his State of the Union Address to Congress December 3, 1929. Here are the highlights:

…Owing to unusual circumstances, it has been extremely difficult to estimate future revenues with accuracy. (…) I recommend that the normal income tax rates applicable to the incomes of individuals for the calendar year 1929 be reduced from 5, 3 and 1½ per cent to 4, 2 and ½ per cent, and that the tax on the income of corporations for the calendar year 1929 be reduced from 12 to 11 per cent. It is estimated that this will result in a reduction of $160,000,000 in income taxes to be collected during the calendar year 1930. (p409) (…) The long upward trend of fundamental progress, however, gave rise to over-optimism as to profits, which translated itself into a wave of uncontrolled speculation in securities, resulting in the diversion of capital from business to the stock market and the inevitable crash. (p411) (…)

AGRICULTURE: The agricultural situation is improving. The gross farm income as estimated by the Department of Agriculture for the crop season 1926-27 was $12,100,000,000; for 1927-28 it was $12,300,000,000; for 1928-29 it was $12,500,000,000; and estimated on the basis of prices since the last harvest the value of the 1929-30 crop would be over $12,650,000,000. The slight decline in general commodity prices during the past few years naturally assists the farmers’ buying power. The number of farmer bankruptcies is very materially decreased below previous years. The decline in land values now seems to be arrested and rate of movement from the farm to the city has been reduced. Not all sections of agriculture, of course, have fared equally, and some areas have suffered from drought. (p413) (…)

TARIFFS: I am firmly of the opinion that their application to the pending [tariff] revision will give the country the kind of a tariff law it both needs and wants. (p415) (…)

THE BANKING SYSTEM: The development of “group” and “chain” banking presents many new problems. (…) The relinquishment of charters of national banks in great commercial centers in favor of State charters indicates that some conditions surround our national banks which render them unable to compete with State banks; and their withdrawal results in weakening our national banking system. (p423) (…)

FEDERAL PRISONS: In order to relieve the pressing evils I have directed the temporary transfer of the Army Disciplinary Barracks at Leavenworth to the Department of Justice for use as a Federal prison. (…) We need some new Federal prisons and a reorganization of our probation and parole systems; and there should be established in the Department of Justice a Bureau of Prisons with a sufficient force to deal adequately with the growing activities of our prison institutions. Authorizations for the improvements should be given speedily, with initial appropriations to allow for the construction of the new institutions to be undertaken at once. (p429) (…)

PROHIBITION: The first duty of the President under his oath of office is to secure the enforcement of the laws. The enforcement of the laws enacted to give effect to the eighteenth amendment is far from satisfactory and this is in part due to the inadequate organization of the administrative agencies of the Federal Government. (…) First, there should be an immediate concentration of responsibility and strengthening of enforcement agencies of the Federal Government by transfer to the Department of Justice of the Federal functions of detection and to a considerable degree of prosecution, which are now lodged in the Prohibition Bureau in the Treasury. (…) The District of Columbia should be the model of city law enforcement in the Nation. …there is need for legislation in the District supplementing the national prohibition act, more sharply defining and enlarging the powers of the District Commissioners and police of the District and opening the way for better cooperation in the enforcement of prohibition between the District officials and the prohibition officers of the Federal Government. It is urgent that these conditions be remedied. (p432)

LAW ENFORCEMENT: (p435) … We need to reestablish faith that the highest interests of our country are served by insistence upon the swift and even-handed administration of justice to all offenders, whether they be rich or poor. (…) I have appointed a National Commission… for an exhaustive study… including the special problems and abuses growing out of our prohibition laws. (…) the Department of Justice has been striving to weed out inefficiency… to stimulate activity on the part of its prosecuting officers… The department is seeking systematically to strengthen the law enforcement agencies… by removal of negligent officials and by encouragement and assistance to the vigilant. (…) Increases in appropriations are needed and will be asked for in order to reinforce these offices. …if the citizen… shall insist on selecting the particular laws which he will obey, he undermines his own safety and that of his country. His attitude may obscure, but it cannot conceal, the ugly truth that the lawbreaker, whoever he may be, is the enemy of society. We can no longer gloss over the unpleasant reality which should be made vital in the consciousness of every citizen, that he who condones or traffics with crime, who is indifferent to it and to the punishment of the criminal or to the lax performance of official duty, is himself the most effective agency for the breakdown of society. Our laws are made by the people themselves; theirs is the right to work for their repeal; but until repeal, it is an equal duty to observe them and demand their enforcement.

I have been gratified at the awakening sense of this responsibility in our citizens during the past few months, and grateful that many instances have occurred which refuted the cynicism which has asserted that our system could not convict those who had defied the law and possessed the means to resist its execution. These things reveal a moral awakening both in people and in officials which lies at the very foundation of the rule of law. (Hoover 1929 1974 404-436) (link)

Money was fleeing Federally chartered banks in order to not be confiscated via asset forfeiture should some officious dry killers storm the bank. Observe also that we now call the Laffer Curve was totally operative during the Coolidge and Hoover Administrations, when every cut in federal tax rates brought increased federal revenue and, in Hoover’s words, “fertilizes the soil of prosperity.” This optimistic sermon came after the Crash, with a Crash still wrecking the German economy, and banking panics already afoot in these States, thanks to use of the income tax as a club to enforce prohibition. Herbert Hoover was already proving that he himself, while enforcing prohibition, was “the most effective agency for the breakdown of society.”

Get the complete story in Prohibition and The Crash on Amazon Kindle in two languages. After this you’ll be able to explain to economists exactly how pseudoscience, fanaticism and loss of freedom wrecked the U.S. economy.

ProhicrashAmazon

I also produce books and articles in Portuguese, using Brazilian historical sources at http://www.expatriotas.blogspot.com or amigra.us